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Please solve the following questions The graphs show the market for bags of potato chips, which is currently at an equilibrium price of $1.33 per

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Please solve the following questions

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The graphs show the market for bags of potato chips, which is currently at an equilibrium price of $1.33 per bag and an equilibrium quantity of 5.33 million bags. Suppose that, in 50 an attempt to lower blood pressure and reduce healthcare 15 costs, the government imposes a $1.00 excise (or 40 commodity) tax on potato chips. 35 Suppose the government levies this tax on manufacturers for each bag of potato chips they produce. Please shift the appropriate curve or curves to illustrate this. Supply Price 20 15 10 Demand 00 2 3 4 56 Quantity ( millions of bags) What is the price paid per bag by consumers (P.) with this new tax? Pr = What is the price received net of tax (Pp,) per bag by producers with this new tax? Pp = S Suppose the government, instead of levying the tax on producers, levies the tax on consumers for each bag of potato chips they purchase. Please shift the appropriate 5.0 curve or curves to illustrate this. 4.5What is the price paid per bag by consumers (P.) with this P. = S new tax? What is the price received net of tax (Pp) per bag by Pp = S producers with this new tax? Suppose the government, instead of levying the tax on producers, levies the tax on consumers for each bag of 5.0 potato chips they purchase. Please shift the appropriate curve or curves to illustrate this. 4.5 4.0 3.5 3.0 Supply Price ($ per bag 2.5 2.0 1.5 1.0 0.5 Demand 0.0 1 2 3 4 5 6 8 9 10 Quantity (millions of bags) What is the effective price paid per bag by consumers (P.) with this new tax? P. = S What is the price received net of tax (Pp) per bag by PD = S producers with this new tax

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